Global Quality Mid Cap - January Commentary
Joseph Stephens Portfolio Manager, Global Team
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Sagar Thanki Portfolio Manager, Global Team
This is a marketing communication. Please refer to the prospectus, supplement and KID/KIID for the Funds before making any final investment decisions. Past performance does not predict future returns.
In 2024, the Guinness Global Quality Mid Cap Fund returned +4.5% (in USD) whilst the MSCI World Mid Cap Index returned +10.7%. The Fund therefore underperformed the MSCI World Mid Cap Index by 6.3 percentage points (discrete 12m returns are shown below).
Broadly, over the year, when markets rallied, the Fund outperformed; when markets were weak, it tended to lag. However, the most notable deviation occurred in Q4 when stock-specific factors (related to company earnings, the US election and commentary around one stock's exposure to semiconductor behemoth Nvidia) weighed on performance.
Despite market volatility in 2024, the Fund’s focus on quality growth remained well-positioned relative to speculative growth, which has consistently underperformed since the Fund’s launch in late 2020. Looking ahead, we expect this trend to persist.
- Quality Remains Key: We believe interest rates are unlikely to return to ultra-low levels, and global economic growth is expected to remain challenging. As such, businesses with strong balance sheets—those not reliant on excessive debt for growth—and companies benefiting from structural growth drivers are likely to be best positioned.
- Mid-Cap Opportunity: The Fund’s mid-cap focus has faced challenges in recent years as markets have been dominated by a small number of large-cap names, resulting in heightened market concentration. Despite this, the Fund has performed well, particularly given that many peers and broader market participants focus on large-cap stocks, often holding the same names. We believe this presents a compelling opportunity for investors to diversify into the often-overlooked mid-cap space, where companies combine the resilience of established businesses with the dynamism of growth-oriented firms.
In this commentary we analyse the Fund's performance over the year and its positioning and outlook. We also report on changes to the portfolio and leading and lagging holdings.
On 1st January 2025, the Irish-domiciled Guinness Sustainable Global Equity Fund became the Guinness Global Quality Mid Cap Fund. The Fund’s benchmark also changed from the MSCI World Index to the MSCI World Mid Cap Index. We expect the same changes to the WS Guinness Sustainable Global Equity Fund in due course, subject to FCA approval. This does not follow a change in the strategy’s philosophy or investment process, and no such change is planned. The fund will continue to seek exposure to structural growth themes in the sustainable space.
Learn more about Guinness Global Quality Mid Cap
Guinness Global Quality Mid Cap
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The information provided on this page is for informational purposes only. While we believe it to be reliable, it may be inaccurate or incomplete. Any opinions stated are honestly held at the time of publication, but are not guaranteed and should therefore not be relied upon. This content should not be relied upon as financial advice or a recommendation to invest in the Funds or to buy or sell individual securities, nor does it constitute an offer for sale. Full details on Ongoing Charges Figures (OCFs) for all share classes are available here.
The Guinness Sustainable Global Equity Funds are designed to provide exposure to high quality growth companies with sustainable products and practices. The Funds hold a concentrated portfolio of mid-cap companies in any industry and in any region. The Funds are actively managed and use the MSCI World Index as a comparator benchmark only.
Guinness Global Quality Mid Cap Fund
Documentation
The documentation needed to make an investment, including the Prospectus, the Supplement, the Key Information Document (KID) / Key Investor Information Document (KIID) and the Application Form, is available from the website www.guinnessgi.com , or free of charge from:
- the Manager: Waystone Management Company (IE) Limited 2nd Floor 35 Shelbourne Road, Ballsbridge, Dublin DO4 A4E0; or,
- the Promoter and Investment Manager: Guinness Asset Management Ltd, 18 Smith Square, London SW1P 3HZ.
Waystone IE is a company incorporated under the laws of Ireland having its registered office at 35 Shelbourne Rd, Ballsbridge, Dublin, D04 A4E0 Ireland, which is authorised by the Central Bank of Ireland, has appointed Guinness Asset Management Ltd as Investment Manager to this fund, and as Manager has the right to terminate the arrangements made for the marketing of funds in accordance with the UCITS Directive.
Investor Rights
A summary of investor rights in English is available here: https://www.waystone.com/waystone-policies/
Residency
In countries where the Funds are not registered for sale or in any other circumstances where their distribution is not authorised or is unlawful, the Funds should not be distributed to resident Retail Clients. NOTE: THIS INVESTMENT IS NOT FOR SALE TO U.S. PERSONS.
Structure & Regulation
The Guinness Sustainable Global Equity Fund is a sub-fund of Guinness Asset Management Funds PLC, an open-ended umbrella-type investment company, incorporated in Ireland and authorised and supervised by the Central Bank of Ireland, which operates under EU legislation. The Funds have been approved by the Financial Conduct Authority for sale in the UK. If you are in any doubt about the suitability of investing in these Funds, please consult your investment or other professional adviser.
WS Guinness Sustainable Global Equity Fund
Documentation
The documentation needed to make an investment, including the Prospectus, the Key Investor Information Document (KIID) and the Application Form, is available in English from https://www.waystone.com/our-funds/waystone-fund-services-uk-limited/ or free of charge from:-
Waystone Management (UK) Limited, PO Box 389, Darlington DL1 9UF.
E-Mail: investorservices@linkgroup.co.uk
Waystone Fund Services (UK) Limited is authorised and regulated by the Financial Conduct Authority.
Residency
In countries where the Fund is not registered for sale or in any other circumstances where its distribution is not authorised or is unlawful, the Fund should not be distributed to resident Retail Clients.
Structure & regulation
The Fund is a sub-fund of WS Guinness Investment Funds, an investment company with variable capital incorporated with limited liability and registered by the Financial Conduct Authority.